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Tips for Investing in Gold With a Credit Card

By Dan Miller · September 01, 2022 · 5 minute read

We’re here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey. Read more We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide. We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right. Read less

Tips for Investing in Gold With a Credit Card

For millennia, people have used precious metals like gold and silver to store their wealth. And while there are other options in the modern world, investing in gold is still quite popular. If you’re wondering, ‘Can you buy gold with a credit card?,’ the answer is yes — but it may not be the best choice.

One of the biggest drawbacks to doing so are the credit card charges for gold purchase on credit cards. If you buy gold with a credit card, you’ll likely owe a processing fee on top of your purchase price. This can make investing in gold with a credit card a less desirable option, and it may make it worth considering alternatives.

Can You Buy Gold With a Credit Card?

It is possible to buy precious metals with a credit card, but it may not be the best investment option for you.

Part of what a credit card is includes processing fees, which are charged to merchants and often get passed down to the consumer. These fees typically range from around 3% to 4% of the purchase amount. If you have to pay processing fees in order to buy gold with a credit card, you may want to consider other investment options.

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Guide to Buying Gold With a Credit Card

If you decide to buy gold with a credit card, here are a few steps to help guide your journey.

Searching for Reliable Dealers

First, you’ll want to look around for reliable gold dealers. There are many different websites where you can buy gold online with a credit card, and each site has its own pros and cons. Whether investing in gold or bitcoin — or anything really — it’s smart to read up on the company to help ensure you’re choosing a reliable dealer.

Comparing Prices and Reviews

Once you’ve found a few dealers appear reliable, you can start comparing prices and reviews. Reading reviews from other investors can give you a sense of what you’re likely to go through with this particular dealer. You’ll also want to compare gold prices at different sites, since the price may vary from dealer to dealer.

Completing the Checkout Form

Once you’ve settled on a dealer, you can go through their checkout process. Before you enter your credit card or other financial details, you may need to enter in additional information. This will likely include your name and address or other identifying information.

Submitting Your Credit Card Details

You’ll then likely be taken to the checkout screen to complete your purchase. If you are using a credit card, you’ll enter your credit card information. Make sure to read the terms and conditions for your purchase, as some dealers charge a market loss fee if you cancel your order.

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Completing the Purchase

Once you complete the purchase, you can await the delivery of your gold. If you’re taking physical hold of your gold, it will be shipped to your address on file. If you have made other arrangements, your gold will get delivered per the instructions you entered during the purchase process.

After the purchase is added to your credit card balance, make sure to follow essential credit card rules. This includes making on-time payments and attempting to pay off your balance in full each month to avoid paying interest.

Recommended: How to Avoid Interest On a Credit Card

Other Ways to Buy Gold

Besides investing in gold with a credit card, there are a few other ways to buy gold.

Debit Card

You may be able to buy gold with a debit card, depending on the dealer that you choose. Investing in gold with a debit card may also come with processing fees. However, it’s common that debit card fees are less than those associated with using a credit card, given how credit cards work compared to debit cards.

ACH or Wire Transfer

Another option to consider is sending the money electronically through your bank. You may be able to fund your purchase using ACH or a wire transfer. Just make sure you understand any fees associated with buying gold in this manner.

Money Order

You also may be able to use a money order to invest in gold. How to do this will depend on the dealer you use. Generally, you’ll need to mail a money order to the dealer. Once your funds are deposited, you’ll be able to use them to make a gold purchase.

Cash Deposit

If you live near the physical establishment of a gold dealer, you may also be able to use cash to invest in gold. You can deposit your cash funds and then use that amount to purchase gold.

P2P Apps

Peer-to-peer (P2P) payment apps like Cash App, Venmo, and Zelle may serve as additional ways to invest in gold. Check with your dealer to see if these (or any other) P2P apps are options to fund your investment. Also make sure you look at the terms and conditions to understand any additional fees that you may owe.

Recommended: Can You Buy Crypto With a Credit Card

The Takeaway

While it is possible to invest in gold with a credit card, it may not be the best investment option. Not all dealers allow you to buy gold with a credit card, and many that do charge processing fees of 3% to 4%. These additional fees mean that you may be better off with another type of investment or a different funding source.

If you’re looking to earn rewards with a credit card, you might consider a cash-back rewards credit card like the SoFi Credit Card. You can earn unlimited cash-back rewards, which you can use to invest in fractional shares, apply as a statement credit, or other financial goals you might have, like paying down eligible SoFi debt.1 Learn more and apply for the SoFi Credit Card today.

Apply for a SoFi credit card!

FAQ

Does it still pay to invest in gold?

If you’re wanting to invest in gold, it can still make sense, depending on your individual financial priorities. The price of gold varies from day to day (and even within the same day), so just like any other type of investment, you’ll want to make sure you understand the underlying value and if or when buying gold makes sense for you.

Can you buy precious metals with a credit card?

You can buy precious metals like gold with a credit card, but it may not be the wisest investment option. Many credit card processors charge a fee to merchants using a credit card, and in many cases, that fee is passed down to consumers. This additional cost can mean it may not be worth it to buy gold with a credit card.

What are the charges for gold purchases on a credit card?

The exact list of fees and charges for buying gold with a credit card will depend on the exact dealer you use to make your purchase. It’s common for dealers to charge a processing fee of 3%-4% if you use a credit card to buy gold.


Photo credit: iStock/Talaj

SoFi cardholders earn 2% unlimited cash back rewards when redeemed to save, invest, or pay down eligible SoFi debt. Cardholders earn 1% cash back rewards when redeemed for a statement credit.1
1See Rewards Details at SoFi.com/card/rewards.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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